AFM Wows With New L.A. Venue: High Costs Deter Film Buyers!

Inclement weather often proves to be an unexpected ally for cinema-related gatherings. Last week’s storm in Los Angeles coincided with an increase in activity at the American Film Market held at the Fairmont Century Plaza, with more individuals congregating in the lobby and a rise in attendance at the film screenings at the adjacent AMC Theatre in the mall.

The new location for the AFM was a significant improvement, particularly after the previous year’s unpopular stint in Las Vegas. The industry, known for its critical nature, found little to criticize this time around. Elevators functioned efficiently without excessive crowding, offices were accessible, and the surrounding area was well-equipped with amenities. A film sales executive remarked that it was the “first time I’ve been able to focus on my work without being distracted by logistical issues.”

Producer Sam Pressman, involved in the remake of “American Psycho” with Luca Guadagnino and Lionsgate, commented, “The vibe here is fantastic, even with the rainy weather which seems to bring people together.”

Sales representatives, who had previously dealt with frustrated buyers during last year’s event in Las Vegas, expressed relief and satisfaction with the improvements. Fabien Westerhoff from the U.K.’s Film Constellation owned by Vuelta, praised the venue and hotel arrangements and the proximity to major talent agencies. He highlighted that the market helps forge a supportive environment for the indie community, fostering significant creative interactions.

This year, the AFM venue was fully booked with 285 exhibitors from 35 different countries, matching the previous year’s numbers. Despite some attendees possibly avoiding the event due to negative experiences in Las Vegas, the turnout was strong, especially from international buyers from countries like South Korea, Germany, the U.K., France, and Italy.

However, the effectiveness of the AFM hinges on the buying and selling of films. This year, the sales floor buzzed with discussions on various challenges in a tough theatrical market. Notably, there were few high-profile sales, with Neon’s acquisition of the rights to Hirokazu Kore-eda’s “Sheep in the Box” for the U.S., U.K., and Australia being one of the few exceptions.

Buyers voiced concerns over high asking prices for major projects, which they felt were unrealistic in the current market context. The timing of AFM, coinciding with the release of several indie box office disappointments, only underscored the uphill battle the industry faces.

Distributors noted that the expectations of producers and sellers have yet to align with market realities and audience preferences. Another issue exacerbating the situation is the challenging post-theatrical sales landscape, which has been impacting buyer willingness to invest at previous levels.

Stuart Ford, CEO of AGC Studios, pointed out that the Pay-1/SVOD issues prevalent in the U.S. are now affecting other major markets like Germany, Spain, and Italy, which in turn affects purchasing power.

In the U.K., Rupert Preston from Vertigo Releasing mentioned that the biggest challenge for distributors is the decline in ancillary revenues, which impacts the overall economy.

Despite the cooling of feverish bidding wars, several projects garnered significant interest at AFM. High-profile projects such as Morten Tyldum’s “Ibelin”, and “Bad Bridgets”, a revenge thriller set in 19th century New York, attracted attention, alongside pricey offerings like Mel Gibson’s “The Resurrection of the Christ.”

AGC’s “Phantom Son”, a thriller with Renee Zellweger directed by David Yates, was highlighted as a strong seller due to its clear marketing strategy and concept. The return of “Sharknado” with “Sharknado Origins” by The Asylum also marked a notable moment at the market.

Despite market changes, there remains a sense of optimism as buyers continue to search for the next big hit. Preston summed it up: “As independents, we adapt to challenges, and if you have a standout film, it will perform. The situation isn’t as dire as some may think, but it is certainly challenging.”